More About The Bill
In Maine's bill, there's language related to "dual-currency" gaming, which is what sweepstakes casinos represent. These platforms offer Gold Coins and Sweeps Coins. Gold Coins are used for fun only and have no redeemable cash value, whereas Sweeps Coins can be redeemed for cash prizes and/or gift cards.
Here's some of what the bill says:
“‘Dual-currency system of payment’ means a system of payment that allows a person to play or participate with direct consideration or indirect consideration or that is otherwise designed in a manner that:
“A. Prevents a person from directly purchasing coins, tokens or other representations of value that are redeemable for any cash prize, cash award or cash equivalents or the chance to win any cash prize, cash award or cash equivalents; and
“B. Encourages a person to purchase services, products, coins, tokens or other representations of value that are not exchangeable for a prize, award, cash or cash equivalents or a chance to win a prize, award, cash or cash equivalents in order for that person to obtain the coins, tokens or other representations of value that are exchangeable for prizes, awards, cash or cash equivalents or a chance to win a prize, award, cash or cash equivalents.”
There's then an explanation of what a Sweeps Coin is:
“[A token that is] provided for free through a promotion or bonus or with the purchase of a related product, service or activity; and … may be exchanged for a prize, award, cash or cash equivalents or a chance to win a prize, award, cash or cash equivalents.”
Maine Gambling Control Unit Has The Power
This bill will also give the Maine Gambling Control Unit authority to determine which platforms are and aren't a dual-currency model. This could result in sweepstakes casinos that are seeking alternative models, such as ClubWPT, shifting toward a more education-focused, single-currency model.
“Social Plus games are a longstanding online product that tens of thousands of Maine adults currently enjoy,” Sean Ostrow, the managing director of the Social Gaming Leadership Alliance, said in a statement responding to Maine’s bill. “LD 2007 would ban this social games category entirely, stifling innovation and stripping millions of dollars of economic activity from small businesses, advertisers and — ultimately — the state. SGLA urges the Legislature to take a more considered, long-term approach to this innovative sector and regulate, rather than senselessly ban, this popular form of free to play, casual entertainment.
“SGLA partner companies operate fully within Maine’s consumer protection laws and remain committed to working with lawmakers to provide further regulations to protect consumers while delivering millions in annual tax revenues to the state.”
The bill, SB2007, is with the Joint Veterans and Legal Affairs Committee.